“Oil prices rose in early trade on Friday, Jan. 10, and were on track for a third straight week of gains as icy conditions in parts of the United States and Europe boosted demand for the heating fuel.”, — write: epravda.com.ua
Oil prices rose in early trade on Friday, Jan. 10, and were on track for a third straight week of gains as icy conditions in parts of the United States and Europe boosted demand for the heating fuel. This is reported by Reuters. Brent crude futures were up 40 cents, or 0.5%, at $77.32 a barrel. U.S. West Texas Intermediate crude rose 38 cents, or 0.5%, to $74.30. Analysts at JPMorgan attributed the rise to concerns about supply disruptions due to increased sanctions, amid low oil inventories, cold temperatures in many parts of the US and Europe and improved sentiment over China’s stimulus measures.Advertisement: The US weather bureau expects central and the temperature will be below average in the eastern parts of the country. Many parts of Europe have also been hit by severe cold, and a colder-than-normal start to the year is likely, which JPMorgan analysts expect will boost demand. “We expect global oil demand to grow significantly year-on-year by 1.6 million barrels per day in the first quarter of 2025, driven mainly by increased … demand for fuel oil, kerosene and liquefied natural gas,” JPMorgan said in a note. Oil prices rose despite the US dollar strengthening for six consecutive weeks. A stronger dollar tends to weigh on prices because it makes it more expensive to buy crude oil outside the United States.Advertisement: Supplies could be further hit as US President Joe Biden is expected to announce new sanctions on the Russian economy this week in an effort to tighten military Ukraine’s efforts against Moscow before President-elect Donald Trump takes office on January 20. The main target of the sanctions is Russia’s oil industry.